Report all taxes
You must report all taxable income to the IRS or you will get audited, even if it’s a small amount. Once you have report all the taxes, you can then begin to take your deductions. This won’t raise a red flag for them to audit your tax return.
You can take a lot of deductions out there so that means that you’re not really paying a lot of federal taxes or state taxes after your deductions if you have all the receipts for them. You can make up for it in donations if you don’t have a lot of other deductions like education or healthcare or dependents. You can donate as much as you want and you can deduct it as much as you need to.
You must keep all receipts with you so that you can deduct it from your tax return. You must save all documents so allocate a box for tax receipts and don’t throw it away for five years. The IRS has about five years to audit you. They can make you pay back once they audit you and you don’t have receipts for them.
Have a pro do it
If you’re not sure because you have many complicated deductions, you can let a professional do it and they will help you to get your maximum returns. You can visit places like Liberty tax or HR block tax or even some online.
You can get credit for dependents, even if they’re just relatives or old people that live with you. You can save their personal information and then deduct them. You must know their full name, social security number and date of birth. They must also be a dependent and save receipts and documents that you support them financially.
Get creative next year
You can get more deductions next year, but you have to start saving your receipts to proof it. You can’t get it if you can’t prove it. You have to pay them back. So if you want more returns next year, you will have to start allocating a box for tax receipts and start collecting gall receipts that is related to your deductions like gas, cars repair, healthcare, education, clothing, food, donation or dependents.